LETTERS

THIS MONTH'S PRIZE LETTER

Fair Trade

ACT AGAINST SUBSIDIES

I have to agree with the statements regarding the need for increased trade made in Anver Versi's editorial "Open the gates for African Trade" in the July issue of African Business. Agricultural subsidies are a major stumbling block to our continent's efforts to increase trade and escape the poverty trap the majority of African countries find themselves in.

Although a lot is said about the need to eliminate subsidies, not much is being done in the EU and the US to do so. The recent US Farm Bill is a good example of where subsidies were increased rather than reduced. In addition, the announcement of an agreed reform of the EU's Common Agricultural Policy (CAP) will leave a sour taste in many African farmers' mouths because the level of subsidies are not reduced, only the way in which it is paid to EU farmers.

Next year the EU will pay their farmers Euros40bn ($45.3bn) rising to Euros45bn ($51bn)in 2007. Wheat and maize will be subsidised by Euro 63 ($71) per ton!

I believe the actions of the US and EU are a clear indication that their governments are not serious about subsidy reductions and are only looking for ways to disguise these payments. Multilateral discussions at the WTO to reduce subsidies should continue, but rather than wait until these subsidies have totally destroyed Africa's agriculture, African governments should act in a decisive way and address the problem directly.

Measures such as the introduction of higher import tariffs, a moratorium on the phasing out of tariffs and import bans on certain products should be taken to support African farmers. This would send a clear message to the EU and US that their subsidies are to the detriment of our farmers and will not be tolerated anymore.

The US and EU are quick to take action to support their farmers, so they have no ground to stand on when African governments introduce measures to support their own farmers and agro-processors. Their farmers would quickly complain when their export markets dry up, and then maybe the US and the EU would start to reduce their subsidies!

Heinrich Stevens

Pretoria

South Africa

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Open letter to George Bush

POWER AND RESPONSIBILITY

Dear President Bush:

As your plane touched down in Dakar, Senegal, we welcomed the opportunity of your visit to examine the US-Africa relationship and to establish ties that are based on honesty, respect and a clear commitment to removing the structural obstacles that impede Africa's development. We would have liked to raise the following issues for your consideration. They are not new ones, but there was an opportunity, with your visit, to act decisively and change the image and relationship of your administration with Africa.

The visit to five African countries was scheduled to clash with the second African Union (AU) Heads of State summit meeting, in Maputo, Mozambique. It is unclear how the administration could have been so out of step with Africa's continental institutions not to have sought to attend this important meeting. Regrettably, your visit served as a distraction to the AU meeting.

We notice that your planning team omitted those countries like Tanzania and Kenya that have suffered directly from terrorist attacks against US interests and citizens. This is odd given the tremendous cost that these countries have borne and continue to bear as a result of their relationship with the US. Furthermore, the highly selective programme excluded civil society and the business communities who could have offered constructive and prepositional conversation around US foreign policy, aid and trade. As constructed, the agenda appeared to offer little else than a series of photo opportunities, starting with Goree Island and ending in a Ugandan AIDS clinic, with shots of our Presidents in between.

This trip may have boosted the Republican campaign image among the African-American community before elections. However, it did very little to boost confidence on the continent that this was a working visit which afforded the time and space for Africans to share their aspirations, and engage the US administration on the need for it to change its policies and practices toward Africa. The most important issues we needed to raise were:

1) Delivery, not spin, on HIV/Aids.

Two-thirds of the 25m people who have died are Africans. There is no doubt this is one of the gravest issues confronting the continent, yet the Global Health Fund is short on resources. While welcoming the public pledge of $15bn to a unilateral US Global AIDS programmes, we note your administration's request for 2004 is a miserly $450m. Where is the $15bn that you have promised to fight AIDS in Africa and the Caribbean? Show us the money!